Blockchain startup Aztec Network raises $100 million round led by Andreessen Horowitz
Blockchain startup Aztec Network today announced that it has secured a $100 million funding round led by Andreessen Horowitz.
More than half a dozen other investors also participated in the Series B round, which follows a $17 million raise that Aztec Network closed last year. The start-up will use the new capital to hire more staff and accelerate product development initiatives.
Aztec Network is developing an encrypted version of the popular Ethereum blockchain. On Ethereum, data about users’ transactions and account balances is publicly available. Aztec Network’s encrypted version of Ethereum will make such data inaccessible, which the startup says will make it more suitable for running financial applications and other programs.
“Encryption allows DeFi applications to offer a much broader range of financial services, unlocking new possibilities for gaming, identity, AI and much more,” wrote Andreessen Horowitz general partner Ali Yahya and partner Guy Wuollet in a blog post. “Aztec believes, as we do, that zero-knowledge proof is a foundational technology for the technology of the future, and should be accessible and easy to use for any developer.”
Aztec Network’s encrypted Ethereum blockchain will build on the encryption technologies it has developed as part of a previous project known as zk.money. It is a blockchain built on Ethereum that enables users to perform digital asset transactions.
According to Aztec Network, zk.money uses a type of cyber security mechanism known as zk-SNARK software to secure user data.
On blockchains like Ethereum, transactions are individually validated to prevent unauthorized activity. This validation process usually requires access to certain data about the transaction. With the zk-SNARK software developed by Aztec Network, a blockchain can verify that a payment meets cybersecurity requirements without accessing detailed transaction data.
As part of its software development efforts, Aztec Network has also created a programming language called Noir. It is based on the syntax of the Rust language, which is used to write operating systems and other advanced software. Aztec Network says Noir can facilitate the development of encrypted blockchain applications.
“What we are building is a revolutionary piece of technology that is transforming how we interact with each other online, where the end user is the customer, rather than the product,” said Aztec Network Chief Executive Officer Zac Williamson. “End-to-end encrypted blockchains protect individuals, eliminating the need for centralized financial systems.”
According to TechCrunch, Aztec Network plans to launch a test version of its encrypted Ethereum blockchain within a year and make the platform fully operational within two. The startup will double the number of employees to around 80 employees to support the development work.
